Boeing first-quarter orders halved amid 737 Max grounding

Boeing first-quarter orders halved amid 737 Max grounding

Boeing first-quarter orders halved amid 737 Max grounding

On March 12, PACA suspended operations of all Boeing 737 MAX aircraft operating in and out of the country's airports until further notice.

The 737 Max, a new variant of the 737 family, is central to Boeing's future in its battle with European rival Airbus and the likely workhorse for global airlines for decades.

Boeing's stock fell 4 percent on April 8.

Muccad Hussein Siraji was on board Ethiopian Airlines flight 303 when it crashed shortly after takeoff March 10th. But the sales data for the Max gives the clearest picture yet of how much scrutiny of that model could be hurting Boeing's bottom line.

Boeing Co's legal troubles grew on Tuesday as a new lawsuit accused the company of defrauding shareholders by concealing safety deficiencies in its 737 MAX planes before two fatal crashes led to their worldwide grounding.

More news: Michael Avenatti Faces Up To 333 Years In Prison After Indictment

As reported earlier by CNN, Boeing may face compensation claims of more than US$2 billion, and that amount is still growing.

Despite Boeing winning orders for 44 planes, including three business-jet versions of the 737, there were no commercial models among them, the Wall Street Journal reported on Monday, nearly a month after Ethiopian Airlines Flight 302 crashed shortly after take-off. Meanwhile, airlines that own the almost 400 Max jets are cancelling flights. In all, 346 people died. Boeing hasn't described the second issue but says it is not related to the anti-stall system. That's because Boeing spent most of 2017 ramping up production of the Max.

American said Tuesday that it canceled 1,200 flights during the quarter that ended March 31 because regulators grounded its 24 Max planes.

Because it is still unclear when the MAX jets will begin flying again, American said it can not yet forecast the cost of the disruption beyond the first quarter.

Over the weekend, the airline removed the plane from its schedule through June 5 - six weeks longer than before - underlining that airlines think the Max will be parked longer than previously expected after deadly crashes in Indonesia and Ethiopia. Boeing CEO Dennis Muilenburg released a statement acknowledging the cause of the the recent Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents resulting from a chain of events beginning with the maneuvering characteristic augmentation system (MCAS).

Related news